Location is critical to the long term performance of your investments.
The key is to look for suburbs, that have always outperformed the averages, or suburbs that are going through gentrification.
Generally, inner suburbs of the major capital cities are the
best locations to invest for long-term capital growth, because of diverse
employment & educational opportunities, no land available for release and general
Gentrification refers to the changing demographics of a
particular suburb and where incomes are growing, which directly affects
people’s ability to pay higher prices for property.
Also, the changing demographic tends to bring in people, who
are willing to invest their time and money into creating changes in their new
Here are 6 stages of gentrification that will help you
identify which suburb is about to undergo a metamorphosis:
Keep an eye out on council/chamber of commerce
meetings that point to future suburb changes/planning
Planners, developers, government entities and
the local community start to get involved in discussions
Keep an eye out for any new development or
community infrastructure projects like residential communities, hospitals,
schools, road or rail projects
Be aware of any specific new precincts like
Doctor’s rooms which may be an indication of a new hospital being built
Watch for population movements, especially
social economic changes. When higher wages become part of the suburb landscape,
property values start to climb.
As more affluent people move into a suburb, they
start to spend a great deal of their resources progressing the gentrification
in their new community.
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Monday, 5 August 2019